Businesses In The Fashion Industry Will Invest More In Technology
A lot of Fashion companies like Adidas, Gucci, Louis Vuitton, H&M,
and several others have started to invest in making NFTs. According to a study Fashion companies as a whole have invested 1.6-1.8 percent of their revenues in technology in 2021.
Going by the same data, a State of Fashion Technology Report, 2022 by McKinsey suggests that the investment of Fashion brands in technology will increase to 3- 3.5%. This prediction is based on the fact that technology can help these brands in staying in the competition.
Technologies like robotics, advanced analytics, and in-store applications may help businesses in a lot of different ways such as helping create sustainable items and creating good customer service.
According to the report, the fashion businesses that started to use technology had different reasons for the switch. 48% stated pandemic as the reason whereas 24% stated convenience and 11% stated product availability and promotions as the reason.
The fashion retailers who have taken AI into their business can see a 118% increase in cumulative cash inflow by 2030. On the other hand, the ones who are slow in investing in technology and are yet to invest in it may lag behind and may even see a 23% decline in revenue.
Business of Fashion and McKinsey have also stated five things that could help Fashion retailers grow their business metaverse reality check, hyper-personalization, connected stores, e, connected stores, end-to-end upgrades, and traceability first.
The McKinsey report shows a lot of possibilities for the fashion business to grow on one hand and also presents the retailers with precautions that they have to take to come out better at Metaverse.
The report has also cautioned the fashion brands that they will not be able to understand the complexities of the Metaverse while also stating the ill effects of not wanting to enter the spree.
Edited By: Khushi Thakur
Published By: Mohammed Anees